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Internet Business Strategies
A strategic view of the various options and connectivity levels available to
business through the Internet.
Copyright 2011 SPMI / Online Development
Internet Business Strategies
The Internet now connects more than 40 million people in virtually all countries around the world, with the number projected to exceed 100 million in 1998.
The growth of the Internet offers businesses many new opportunities and techniques for accessing customers and markets.
Internet Business Strategies
The widely varying Internet connection options range from simple Electronic Mail boxes to a dedicated Web server costing $100,000 or more.
As connectivity, functionality, and volume increase, so do the associated costs.
Internet Business Strategies - High-Level ViewHigh-Level View
Cost
Function
Trade-off between Cost and Internet Functionality
Internet Business Strategies - Connection OptionsConnection Options
Cost
Function
A business can start out with a simpler Internet presence, and build on this foundation as more capabilities are needed.
Internet Business Strategies - Connection OptionsConnection Options
Cost
Function
11
2
3
4
5
The following are five sample Internet strategies, combining the appropriate function and technology at each level.
Internet Business Strategies - Connection OptionsConnection Options
Cost/Function Line
Five Sample Connection Options• Electronic Mail Only• Dial-up Client Access• Contracting for Server Space• On-demand Local Area Network Access• Build a Dedicated In-house Server
Internet Business Strategies - E-mail OnlyE-mail Only
Cost/Function Line
11
Capabilities• Exchange E-mail with everyone connected to
the Internet• Subscribe to Internet Mailing Lists• Distribute product and service information to
customers and potential customers
Internet Business Strategies - E-mail OnlyE-mail Only
Cost/Function Line
11
Advantages• Provides access to over 40 million Internet-
connected users• Have an E-mail address at very low cost• Simple start-up and operation
Internet Business Strategies - E-mail OnlyE-mail Only
Cost/Function Line
11
Disadvantages• No access to advanced protocols such as the
World Wide Web• No capacity to publish company material in
multimedia formats
Internet Business Strategies - Dial-up Client AccessDial-up Client Access
Cost/Function Line
22
Capabilities• Includes E-mail, Usenet News, File-Transfers,
Gopher, and World Wide Web access• Distribute company information through E-mail
and Newsgroups• Ability to browse multimedia Web sites
Internet Business Strategies - Dial-up Client AccessDial-up Client Access
Cost/Function Line
22
Advantages• Complete access to everything the Internet has
to offer, including forms and commerce sites• Very low start-up and operation costs• Fairly simple set-up and operation
Internet Business Strategies - Dial-up Client AccessDial-up Client Access
Cost/Function Line
22
Disadvantages• Response time through dial-up modem is
relatively slow• “Client-side” functionality only• Does not include ability to publish World Wide
Web pages or documents
Internet Business Strategies - Server Space RentalServer Space Rental
Cost/Function Line
33
Capabilities• Allows your company to publish its multi-media
material on the World Wide Web• Create mailing lists for automated distribution of
company and product information• Solicit feedback, requests for information, and even
process orders through your Web site
Internet Business Strategies - Server Space RentalServer Space Rental
Cost/Function Line
33
Advantages• Makes you a provider, rather than a consumer, of
Web graphical information• Low costs, moderate skill requirements• Wide variety of rental sites available• Can also use File Transfer, other protocols
Internet Business Strategies - Server Space RentalServer Space Rental
Cost/Function Line
33
Disadvantages• Dependent on rules, architecture, and support
applications provided by server space provider• Need to carefully select space provider to
insure reliability, control over material
Internet Business Strategies - On-demand LANOn-demand LAN
Cost/Function Line
44
Capabilities• Connects an entire office or workgroup to the
Internet• Full Client-side access to all Internet protocols• Dial-up or ISDN line gives on-demand connect
and disconnect from your access provider
Internet Business Strategies - On-demand LANOn-demand LAN
Cost/Function Line
44
Advantages• Can use ordinary telephone line and modems,
or choose a faster ISDN connection• Lower costs/complexity than dedicated lines• Allows centralized set-up and management of
group Internet access
Internet Business Strategies - On-demand LANOn-demand LAN
Cost/Function Line
44
Disadvantages• Not as fast as a full-time dedicated line• Requires additional hardware (a “router”) vs.
single-user access with single modems• Still requires separate server space rental for
Web publishing
Internet Business Strategies - Dedicated ServerDedicated Server
Cost/Function Line
55
Capabilities• In-house server gives you total control over hardware
resources, operating system, etc.• Full server-side use of all Internet protocols, depending
on server software installed• May rent server space to other companies to spread
operating costs
Internet Business Strategies - Dedicated ServerDedicated Server
Cost/Function Line
55
Advantages• Total control over development and implementation
of all World Wide Web, File-Server, other materials• Control over speed and capacity of Internet access
lines• More advanced use of Web and E-mail tools
Internet Business Strategies - Dedicated ServerDedicated Server
Cost/Function Line
55
Disadvantages• Most costly Internet strategy - requires full-
time dedicated connection & systems• Requires in-house skills for development,
testing, and technical support
Internet Business Strategies - Getting StartedGetting Started
Selecting a Strategy• Begin with your business requirements• Select technology based on business
objectives and strategy• Start with modest goals, then grow• Focus on competitive advantage
Internet Business Strategies - The The NetstartNetstart ProgramProgram
Benefits of using Netstart program• Netstart allows a basic early implementation,
adding capabilities as you need them.• Our flexible approach adapts to your business
requirements.• Your development work is professionally
planned and managed.• Knowledge, skills, and tools can be transferred
to your internal resources.
Internet Business Strategies - Next StepsNext Steps
Where to go from here?• We customize the Netstart Internet Task Plan
based on your business requirements.• Prepare to evaluate service provider options.• Assess and plan technical environment.• Select and acquire Internet tools.• Begin development of your customized
Internet Business Presence.
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